What Are Successive Durations?
Successive durations are durations of time that comply with each other instantly and chronologically, and that are linked collectively by a standard occasion.
- Successive durations are intervals of time the instantly comply with each other.
- In finance, contracts will denote successive durations within the time period for which the contract is legitimate.
- For insurance coverage contracts, successive durations are utilized in incapacity insurance policies to indicate the exclusion interval and profit interval phrases.
- Companies may additionally report monetary figures denoting rising beneficial properties or losses over successive durations.
Understanding Successive Durations
Successive durations are utilized in contracts when defining how lengthy the contract interval will final. A year-long contract, for instance, will likely be comprised of 12 successive months, with the primary month beginning on the efficient date and the final month ending on the contract anniversary date. The contract signing is taken into account the frequent occasion linking collectively the 12 months.
Successive durations are used to indicate continuation. Somebody who purchases a subscription to a month-to-month journal, for example, will obtain one problem every month for twelve months, with the string of months thought of a successive time period. The frequent hyperlink between the months is the subscription the individual bought.
Insurance coverage corporations use successive interval calculations when offering advantages to a policyholder, who visits a hospital for a similar damage. Every go to is taken into account a part of a successive interval, and every go to is taken into account a part of a continuation of the primary damage, slightly than a brand new damage.
In incapacity insurance coverage contracts, it is necessary to know how insurance coverage corporations calculate the period of time that advantages will likely be supplied for accidents suffered. Insurance coverage contracts present for a most profit interval by which the policyholder can obtain advantages for an damage. Within the case of a incapacity contract, the advantages in query are a proportion of the policyholder’s revenue. The profit interval contains the variety of days that advantages are drawn for a single damage or for successive durations of incapacity. As soon as the utmost profit interval has been reached, no additional advantages will likely be paid.
Insurance coverage corporations typically require a time period to move between profit durations to contemplate them non-successive durations. That is referred to as a “ready interval” or “elimination interval.” The period of time might fluctuate in accordance with the kind of damage, with advantages solely paid for one damage at a time. Throughout the ready interval, the policyholder ought to be capable of work a sure variety of hours to be thought of a part of lively employment.
Successive Durations Contract Clause Instance
The next is a few boilerplate language which may be present in a contract relating to successive durations:
“Successive Durations. The time period of this plan shall mechanically be prolonged for one (1) extra 12 months on the finish of the preliminary time period, after which once more after every successive one (1) 12 months interval thereafter (every such one (1) 12 months interval following the Preliminary Time period is known as a successive interval). Nevertheless, the committee might terminate this plan on the finish of the preliminary time period, or on the finish of any successive interval thereafter, by giving the executives written discover of intent to terminate the plan, delivered at the least six (6) months previous to the top of such preliminary time period or successive interval.”